TurkStream requires US$7.3 billion investment

An explanatory document attached to the draft bill on the ratification of the Turkish Stream intergovernmental agreement has stated the amount of investment that is needed for the construction of both lines of the gas pipeline.

The document has revealed that approximately €7 billion (US$7.3 billion) of investments is required in order to implement the Turkish Stream project in full. This figure includes the amount that was spent on the South Stream, thus taking the financial losses sustained due to the South Stream project being halted into account.

Meanwhile, the Daily Sabah has reported that Russia’s energy committee stated that the TurkStream agreement will be voted out in the State Duma in January.

Pavel Zavalny, Chairman of the Russian State Duma Committee of Energy, reportedly said: "We hoped voting would take place this year, but the last session of the Duma will be held on 21 December.”

Zavalny added: "I expect the voting will take place in January. The first session of the Duma will be held on 9 January. The agreement has not yet been submitted to Duma's approval.

The Russian government approved a draft legislation on 16 December. As a result, Russia will be able to ratify its agreement with Turkey on the project.

On 10 October, Russia and Turkey signed an agreement for the implementation of the Turkish Stream project.

While it has faced setbacks since it was announced in late 2014, under the agreement, the Turkish Stream project will see the construction of two underwater pipe lengths in the Black Sea, with an annual capacity of 15.75 billion m3 each. The pipes will deliver Russian gas to Turkey and to a hub on the Turkish-Greek border. From there, the gas can be transferred to other European countries.

The onshore stretch of the first leg will be owned by Turkish customers and the onshore stretch of the second leg will be controlled by a joint venture. Gazprom will own the rights for both offshore legs of the pipeline.

The Russian Energy Minister, Alexander Novak, said that construction of the pipeline will commence in 2017 and construction of both the onshore and offshore sections will be completed by the end of 2019.